Suppose Two Portfolios Have the Same Average Return,the Same Standard

Suppose two portfolios have the same average return,the same standard deviation of returns,but portfolio A has a lower beta than portfolio B.According to the Treynor measure,the performance of portfolio A __________.

A) is better than the performance of portfolio B
B) is the same as the performance of portfolio B
C) is poorer than the performance of portfolio B
D) cannot be measured as there is no data on the alpha of the portfolio
E) none of the above is true.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free